Why This Cannabis Penny Stock Could Be Wall Street’s Next Meme Trade Breakout
The cannabis industry has been through one of the longest bear markets in recent history. But in the past few weeks, Tilray Brands (TLRY) has shown signs that it might be the next stock to capture meme stock status — and the Market on Close team spotted it early.
From a low of just $0.70, TLRY has spiked past $1.00, fueled by sector-wide rallies, speculation around U.S. marijuana reclassification, and an active options market that has meme traders paying attention.
Why John Rowland Thinks TLRY Has Meme Stock Potential
On the July 25 episode, John Rowland, CMT, explained why TLRY checks the boxes for a potential meme move:
- Down But Not Out: TLRY has fallen from $70 to around $0.70, leaving it deeply beaten down and attractive to contrarian retail traders.
- Turnaround Story: Despite the drop, TLRY has a market cap of $700M and annual sales nearing $800M.
- Healthy Options Market: Meme stock runs often rely on gamma squeezes. TLRY averages +50,000 contracts traded daily with over 800,000 in open interest.
- Rising Implied Volatility (IV): IV has jumped from the mid-50s to +100% in days. If IV approaches 99–100%, it can indicate a euphoric phase, while rising IV is often a sign of building momentum.
Sector Tailwinds
Cannabis stocks are surging on speculation that the U.S. will reclassify marijuana from Schedule I to Schedule III, with reports on this seemingly confirmed by President Trump in a press conference earlier this week. This would allow cannabis companies to claim standard business tax deductions, gain better access to banking, and attract institutional investment.
ETF performance in the space has been staggering — Roundhill Cannabis ETF (WEED) surged +29%, Amplify Seymour Cannabis ETF (CNBS) spiked +27%, and AdvisorShares Pure US Cannabis ETF (MSOS) rocketed +25% in Monday’s session on reclassification chatter.
What’s Next for TLRY?
While meme stocks are notoriously volatile, the setup is there:
- A deeply oversold name with potential catalysts
- A highly active options market
- Sector momentum
- Growing retail buzz
If marijuana reclassification becomes official or a squeeze starts to take place, TLRY could see a spike similar to other meme stock rallies of the past.
Watch the Market on Close clip now for John Rowland’s full breakdown:
And while you’re at it, track cannabis stocks with Barchart’s Cannabis Stock and ETF Watchlist for prices, charts, and options data.
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.